EX-99.1 2 f08062exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1

     
News Release
    
 
    
Investor Relations Contact:
  Corporate Communications Contact:
Sonia Segovia, IR Coordinator
  Abbie Kendall, Principal
PDF Solutions, Inc.
  Armstrong Kendall, Inc.
Tel: (408) 938-6491
  Tel: (503) 672-4681
Email: sonia.segovia@pdf.com
  Email: abbie@akipr.com

PDF Solutions® Reports Record
First Quarter 2005 Revenue

Results Represent 9th Sequential Quarter of Revenue Growth

     SAN JOSE, Calif.—April 21, 2005—PDF Solutions, Inc. (Nasdaq: PDFS) the leading provider of process-design integration technologies to enhance IC manufacturability, today announced financial results for its first fiscal quarter ended March 31, 2005.

     Revenue for the first fiscal quarter of 2005 totaled a record $18.1 million, an increase of 43%, compared with revenue of $12.7 million for the first fiscal quarter of 2004. On a GAAP basis, net income for the first fiscal quarter of 2005 totaled approximately $1.4 million, or $0.05 per diluted share, compared with a net loss of approximately $1.8 million, or $0.07 per diluted share, for the first fiscal quarter of 2004.

     In addition to using GAAP results in evaluating PDF Solutions’ business, management also believes it useful to measure results using a non-GAAP measure of net income or loss, which excludes amortization of stock-based compensation and acquired intangible assets. Using this non-GAAP measure, net income for the first fiscal quarter of 2005 totaled $2.7 million, or $0.10 per diluted share, compared with non-GAAP net loss of approximately $373,000, or $0.01 per diluted share, for the first fiscal quarter of 2004.

     As previously announced, PDF will hold a live conference call beginning at 3:00 p.m. Pacific Time/6:00 p.m. Eastern Time today to discuss these quarterly results. A live webcast of this conference call will be available on PDF Solutions’ website at http://ir.pdf.com/medialist.cfm. A replay of the call will be available at the same website address beginning approximately two hours after completion of the live call. Further, a copy of this press

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release, including the disclosure and reconciliation of certain non-GAAP financial measures to the most directly comparable GAAP measure, which non-GAAP measures may be used periodically by PDF Solutions’ management when discussing financial results with investors and analysts, will be available on PDF Solutions’ website at http://www.pdf.com/news_archive.phtml following the date of this release.

About PDF Solutions

PDF Solutions, Inc. (Nasdaq: PDFS) is the leading provider of process-design integration technologies for manufacturing integrated circuits (ICs). PDF Solutions’ software, methodologies and services enable semiconductor companies to create IC designs that can be more easily manufactured using manufacturing processes that are more capable. By simulating deep sub-micron product and process interactions, the PDF solution offers clients reduced time to market, increased IC yield and performance, and enhanced product reliability and profitability. Headquartered in San Jose, Calif., PDF Solutions operates worldwide with additional offices in Europe and Japan. For more information, visit www.pdf.com.

PDF SolutionsÒ is a registered trademark of PDF Solutions, Inc.

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PDF SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands)

                 
    March 31,     December 31,  
    2005     2004  
ASSETS                
Current assets:
                
Cash and cash equivalents
   $ 48,388     $ 45,660  
Accounts receivable, net of allowances
     18,370       15,978  
Prepaid expenses and other current assets
     2,867       2,685  
Deferred tax assets
     1,550       1,586  
 
            
Total current assets
     71,175       65,909  
Property and equipment, net
     3,236       3,321  
Goodwill
     39,886       39,886  
Intangible assets, net
     14,290       15,791  
Other assets
     348       500  
 
            
Total assets
   $ 128,935     $ 125,407  
 
            
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current liabilities:
                
Accounts payable
   $ 1,434     $ 1,023  
Accrued compensation and related benefits
     2,613       3,209  
Other accrued liabilities
     1,696       2,593  
Taxes payable
     3,533       3,286  
Deferred revenues
     3,704       2,905  
Billings in excess of recognized revenue
     2,211       1,581  
 
            
Total current liabilities
     15,191       14,597  
Long-term liabilities
     302       311  
Deferred tax liabilities
     1,583       1,701  
 
            
Total liabilities
     17,076       16,609  
 
            
Stockholders’ equity:
                
Common stock
     4       4  
Additional paid-in-capital
     135,856       134,191  
Treasury stock
     (4,806 )     (4,806 )
Deferred stock-based compensation
     (106 )     (148 )
Notes receivable from stockholders
     (550 )     (550 )
Accumulated deficit
     (18,581 )     (19,975 )
Accumulated other comprehensive income
     42       82  
 
            
Total stockholders’ equity
     111,859       108,798  
 
            
Total liabilities and stockholders’ equity
   $ 128,935     $ 125,407  
 
            

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PDF SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)

                 
    Three Months Ended  
    March 31,     March 31,  
    2005     2004  
Revenue:
                
Design-to-silicon-yield solutions:
                
Integrated solutions
   $ 12,557     $ 9,506  
Software licenses
     3,449       2,189  
Gain share
     2,087       981  
 
            
Total revenue
     18,093       12,676  
 
            
Cost and expenses:
                
Cost of design-to-silicon-yield solutions:
                
Direct costs of design-to-silicon-yield solutions:
                
Integrated solutions
     5,750       4,352  
Software licenses
     157       2  
Amortization of acquired core technology
     1,266       1,350  
Research and development
     5,336       5,218  
Selling, general and administrative
     3,914       3,797  
Stock-based compensation amortization*
     42       255  
Amortization of other acquired intangible assets
     235       410  
 
            
Total costs and expenses
     16,700       15,384  
 
            
Income (loss) from operations
     1,393       (2,708 )
Interest and other income
     272       153  
 
            
Income (loss) before taxes
     1,665       (2,555 )
Tax provision (benefit)
     271       (713 )
 
            
Net income (loss)
   $ 1,394     $ (1,842 )
 
            
Net income (loss) per share:
                
Basic
   $ 0.05     $ (0.07 )
 
            
Diluted
   $ 0.05     $ (0.07 )
 
            
Weighted average common shares:
                
Basic
     25,696       25,301  
 
            
Diluted
     27,129       25,301  
 
            
* Stock-based compensation amortization:
                
Cost of design-to-silicon-yield solutions
   $ —     $ 28  
Research and development
     42       202  
Selling, general and administrative
     —       25  
 
            
 
   $ 42     $ 255  
 
            

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PDF SOLUTIONS, INC.
RECONCILIATION OF REPORTED GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(UNAUDITED)
(In thousands, except per share amounts)

                 
    Three Months Ended  
    March 31,
2005		     March 31,
2004		  
GAAP net income (loss)
   $ 1,394     $ (1,842 )
Stock-based compensation amortization
     42       255  
Amortization of intangible assets, net of taxes
     1,263       1,214  
 
            
Non-GAAP net income (loss)
   $ 2,699     $ (373 )
 
            
Non-GAAP net income (loss) per share — diluted
   $ 0.10     $ (0.01 )
 
            
Weighted average common shares — diluted
     27,129       25,301  
 
            

Use of Non-GAAP Information
In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles (GAAP), PDF Solutions also provides certain Non-GAAP financial measures that exclude certain charges as additional information relating to its operating results. PDF Solutions’ management believes that the presentation of these measures provides useful information to investors regarding certain additional financial and business trends relating to its financial condition and results of operations. PDF Solutions has also chosen to provide this information to investors to enable them to perform meaningful comparisons of PDF Solutions’ past, present and future operating results. These measures are not in accordance with, or an alternative to, GAAP and may be different from non-GAAP measures used by other companies. The calculations of non-GAAP financial measures have been adjusted to exclude the effects of amortization of stock-based compensation and acquired intangible assets.

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